"Nobody in the government wants to be seen to be either approving or rejecting Israeli military sales," a defense insider reportedly told the ABC.
The new drone is from the Shahed-101 family of UAVs that all have a distinctive V-shaped tail.
The report comes just days after the IDF revealed stockpiles of sophisticated Chinese-made weaponry used by Hamas in Gaza.
The sale comes as Israel intensifies its offensive in the Gaza Strip. The US has pressed Israel to minimize civilian casualties in Gaza and has called to scale down the war in the coming weeks.
Elbit Systems specializes in developing new technologies for the defense industry, including surveillance systems, drones, and munitions.
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